ST: Barcelona’s New Home Supply Could Run Out Within 12 Months

16 June 2016 – El Mundo

Sociedad de Tasación has published its ST New Home Census for 2016 for the province of Barcelona and Barcelona Capital. The company has provided the market with complete and detailed information about the supply of unsold new homes in the region, whereby updating the ST Census for 2014 to include the new supply of homes constructed during the last two years. In addition, it includes a breakdown of the properties by construction phase, price and surface area.

The study contains analysis of the municipalities that have more than 50,000 inhabitants in the province of Barcelona, as well as specific data about the capital. The municipalities analysed together account for almost 65% of the population and stock of existing homes in the region.

According to the report, currently only 725 of the 2,719 new homes registered for sale in 2014 are still on the market, which implies a reduction in the stock of 73.3%, in just two years. Moreover, 2,068 new units have been identified, which means that in total the current supply adds up to 2,793 homes. That figure represents a net stock increase of 2.7% compared with the ST Census for 2014.

In light of this data, ST Sociedad de Tasación’s Director General, Juan Fernández-Aceytuno, said that “if this rate of absorption of the new home stock continues, then the current supply could run out within 12 months in the province of Barcelona and within 14 months in the capital”.

In the city of Barcelona, only 215 of the 917 new homes up for sale in 2014 are still on the market, which means that 82.5% of the supply has been sold in two years. As well as the homes that have been on the market since 2014, 857 new homes have been put up for sale in the last two years, which means that the current supply amounts to 1,072 homes, a net increase in the total stock of 16.9% with respect to the ST Census for 2014.

The supply of off-plan homes increases

Fernández-Aceytuno also highlights changes in the composition of the housing stock: “As far as the construction phase is concerned, the supply of homes that have not been started has grown by 212% in the municipalities of Barcelona that have more than 50,000 inhabitants. As such, there has been a 45% reduction in the volume of finished homes included in the stock in 2016, which amounts to 834 units in total”, concluded Fernández-Aceytuno.

In the city of Barcelona, there has also been an increase in the number of off-plan homes, in this case by 150%, with respect to the data in 2014. Thus, whilst in 2014, the supply of finished homes accounted for 50.4% of the total, in 2016, they represented just 19.2%.

Increases in the average house size and the average price

The study reflects an increase in the average size of homes. Whilst in the ST Census for 2014, homes measuring less than 100 sqm accounted for 67.7% of the supply, they now represent just 47.6%.

Similarly, in 2016, the average price of new homes is higher in 2016 than in 2014. As such, homes worth more than €300,000 have increased from representing 26% of the stock in 2014, to 35.3% in 2016. (…).

Original story: El Mundo

Translation: Carmel Drake